Monday, July 26, 2010
NCB Achieves Stellar Financial Performance for Quarter 3
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| Dennis Cohen, Deputy Group Managing Director and CEO, NCB Capital Markets Limited shares a joke at the Bank’s Investors’ Briefing held on July 23 as he reiterates the strength of the Bank. Sharing in the moment are (l-r) Patrick Hylton, Group Managing Director, Yvonne Clarke (centre), Group Chief Financial Officer and Ann-Marie Hamilton (right), General Manager, NCB Insurance Company Limited. |
The largest indigenous bank in Jamaica, National Commercial Bank (NCB), continues to record strong performance in spite of the economic challenges, demonstrating its strength through experience and sound management. The group announced the third quarter’s financial results at an Investors’ Briefing held at the NCB Wellness & Recreation Centre recently; reporting a net profit of $8.08 billion for the nine months which represents a 10.1% increase ($742 million) year over year.
“Our current environment urges us to carve out a strategy to surmount the economic conditions. NCB has demonstrated this in terms of our business models as we focus on the right fit at the right time,” said Patrick Hylton, Group Managing Director. He later stated that there are two dimensions to adding value to the company which include the power of diversity as we continue to maintain a positive trajectory, the other being adding value to the customers’ needs in terms of innovation and superior products and services.
The NCB Chief took the opportunity to make two major announcements: (1) the Bank’s decision to reduce lending rates by as much as 300 basis points in some loan categories effective August 1, 2010 and (2) plans for the installation of a ‘Middle Market Unit’ intended to specifically cater to the larger local productive entities; identifying that group between Corporate and SME as an under-served segment in need of a dedicated financial support structure.
In reporting on the Group’s overall performance, the Group Chief Financial Officer, Yvonne Clarke during her presentation reiterated the strength of the group’s diversified portfolio stating “As the market changes the strengths of different segment come to fore and aide in the overall performance.” She supported this position by providing a historical recap of segment dominance/performance over the last four years.
The Group’s strength continues to be reflected in their capital position, corporate social responsibility initiatives and the local and international business awards/recognitions they continue to receive.
· The Risk-Based Capital Adequacy Ratio for NCBJ was 17.0% which exceeds the minimum requirement of 10% stipulated by the Bank of Jamaica (30 June 2009 – 13.7%).
· The Capital to Risk Weighted Assets Ratio for NCBCM was 62.0% which exceeds the minimum requirement of 10% stipulated by the Financial Services Commission (30 June 2009 – 58.3%).
· The Solvency Ratio for NCBIC was 24.8% which exceeds the minimum requirement of 10% stipulated by the Financial Services Commission (30 June 2009 – 19.6%).
The wealth and asset management segment contributed operating profits of $2.63 billion for the nine months with NCB Capital Markets (NCBCM), the main contributor to the segment providing 90.8% of the operating profits. The result for this segment reflects a $1.3 billion or 100.7% increase over the prior June 2009 period; a significant growth attributed to: (a) increase in net interest income and (b) non-recurrence of mark to market losses from trading activities undertaken in the prior year.
The insurance segment contributed operating profits of $1.47 billion for the nine months which represented an increase of 1.6% or $23 million over the prior year’s nine month results. NCB Insurance Company Limited (NCBIC) achieved a net profit of $1.23 billion increasing by $74 million when compared to 30 June 2009.
The Board of Directors has declared an interim dividend of $0.40 cents per share payable on 20 August 2010 for shareholders on record as at 9 August 2010.
In his summation Dennis Cohen the Group’s Deputy Managing Director recognized the tremendous support of customers, employees and stakeholders of NCB and affirmed the organization’s continued commitment. He ended by highlighting the fact that NCBJ remains the largest commercial bank when measured by profits, assets, branch network and capital base.
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